Hence if the lease clearly has terms against this and section 8 is supporting the rent, that is your best bet to ensure the tenant complies with the lease.

Also, what’s the best way to ensure the area is safe and desirable for tenants?

A CPA familiar with real estate partnerships could clarify the implications for everyone involved.A great attorney or CPA can help you iron out the details and ensure the partnership benefits all parties fairly.

I wanted to help them out and minimize their loss and saw an opportunity to get a property slightly below market because of my commission savings, immediate mortgage and maintenance relief, in addition to keeping a lower short term interest rate How did you find this deal and how did you negotiate it?

You can build your own team i.e. title co, insurance, pm, contractors, handyman,process server, lender etc.... or you can find an operator who can get you going in that market while simultaneously building out your team.Section 8 housing is a great way to ensure consistency with rent payments however not all tenant who have HCV pay 0%.

Additionally, I am aware that our Investor Relations Representative immediately reached out to you after your Better Business Bureau submission to ensure you understood and if you had any questions.

Maintenance/cap ex, insurance, if a rental PM, bookkeeping, misc.The fact you have a loan means 1) leverage 2) equity pay down.In addition, there are tax benefits.So I will do some rough underwriting as an OO non-rental at 95% LTV (because FHA has some undesired consequences that make the 1.5% difference in LTV worth avoiding the FHA).equity paydown: 20% (using OP interest rate at 95% LTV and not counting closing costs). 

How does the buyer ensure that the proceeds are used to pay the first mortgage?

Instead of losing 55k they will probably only end up losing $25,000 - $30,000Long term its not a great cash flow property but with some renovations and addition of a parking slab I think long term appreciation is the big goal here.

Big expense up front, additional expenses over the life of the lock, they can be too complicated for renters to figure out, and they don't solve all the problems a landlord may face.